Worst is over for IT Pros - 6,900 IT jobs added in August
Number IT Job Market will be 64,600 smaller at the end of 2020 than 2019
Park City UT e-janco.com Initially over 105,000 IT pros lost their jobs due to COVID shutdowns. By the 12/31 the number of IT jobs lost will be 64,600. In addition, with the second wave of the pandemic forcing more shutdown and slowing IT hiring. Many of the CIOs and CFOs interviewed by Janco in the past few weeks feel that with the existing pace of re-openings, secondary shutdowns, civil unrest, and the election, normal IT hiring will not resume until late in the fourth quarter of this year, if not early 2021. Janco currently forecasts the recovery of the IT job market will not be until the second quarter of 2021.
The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “We have found that a number of companies have already shuttered their doors or are expanding layoffs that are impacting the IT job market. This includes the airline and travel industries that are now starting lay-offs. As a result, IT professionals working for those companies are looking for new employment opportunities. IT hiring will remain soft but improving slightly until after the election, when the public feels they can go back to a normal life, and more companies open their doors. Hindering recovery is the continued civil unrest, which is slowing confidence by the public, which in turn impacts corporate confidence.” The CEO added, “In trouble cities, like Portland, companies are rethinking operations there all together. Also, many major companies are resuming existing operations slowly, but are holding back on any expansion until after the election.”
Janulaitis said, “On the bright side, for the first time in six months there was a net gain in the number of IT jobs. Also, the BLS provided revised number downward for jobs lost by IT professionals by 4,400 for July. However, there still is a net loss of jobs in the last 12 months coming from Computer Systems Design/Related Services and Telecommunications 55,700 and 26,100, respectively.”
IT Job Market Size Adjustments - Prior Two Months
BLS adjusted downb the number of jobs for IT Pros by 53,200 for the prior two months
IT Hiring Slows
The latest data for more read on...
Note - data includes the adjustments by the BLS to the initially reported data.
The CEO also said, “Spending for IT products and services has all but stopped as companies reevaluate the state of the economy globally as new waves of selected shutdowns occur. With more companies adopting WFH to address “social distancing” and avoiding in-office contacts, fewer companies are taking an aggressive approach to any additional spending for IT products and services. It does not help that the US Congress and the President are at a stalemate on pandemic relief.”
Current IT Hiring Plans - IT Job Hiring Stalls
With the move towards Artificial Intelligence, the treat of an economic downturn, inflation, high energy cost, and the continued wars will continue dampen hiring for IT pros over the next few quarters.
IT Job Market Flat for FY 2024
The number of IT jobs not filled now is just over over 156K unemployed IT Professionals. The IT job market shrank by over 57,400 jobs in CY 2023. Overall that is a flattening of the long term growth rate pattern of IT job market.
Data complied and forecast updated by Janco Associates with data as of February 2024
Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.